Guangdong Mingyang Electric Co. Ltd. A

US President Donald Trump signed Executive Order 14420 on August 26 local time, declaring a national emergency for the US bulk power system and tightening procurement, import, and installation of foreign-manufactured grid equipment on national security grounds. This marks another round of similar restrictions following Executive Order 13920 in May 2020. Citing the International Emergency Economic Powers Act and the National Emergencies Act, the order prohibits US companies from purchasing, importing, or installing certain foreign-manufactured bulk power system equipment, including substation transformers, large generators, industrial control systems, battery energy storage systems, and related software. It also requires the Department of Energy to formulate implementation rules within 120 days and propose revisions to procurement regulations within 180 days. Chinese Foreign Ministry spokesperson Lin Jian responded that China consistently opposes the practice of overstretching the concept of national security to suppress companies from other countries. Affected by the news, China's A-share power equipment sector came under pressure, with shares of Sieyuan Electric, JSTI Group, and Mingyang Electric falling. Several listed companies responded that the executive order's detailed rules have not yet been implemented, and their direct revenue exposure to the US is limited, making the impact difficult to assess. This executive order continues restrictions on Chinese power equipment by Europe and the US over the past three months, following the EU's earlier restriction on public funding support for inverters and the US FCC's inclusion of grid-connected power inverters under regulation.

Mingyang Electric released its 2026 interim report. Total operating revenue was 2.558 billion yuan, down 26.38% from the same period last year. Net profit attributable to the parent company was 87.1645 million yuan, down 71.55% year on year. Net cash flow from operating activities was negative 516 million yuan, ranking 77th among peer companies that have disclosed. The company's latest asset-liability ratio was 46.88%, gross margin was 18.87%, ROE was 1.67%, and diluted earnings per share was 0.28 yuan. The number of shareholders was 25,700, and the top ten shareholders held 60.00% of the shares.

Mingyang Electric disclosed its 2026 semi-annual report on August 26. In the first half of the year, it achieved total operating revenue of 2.558 billion yuan, down 26.38% year on year. Net profit attributable to the parent company was 87.1645 million yuan, down 71.55% year on year. Net profit after deducting non-recurring items was 82.3683 million yuan, down 72.65% year on year. Net cash flow from operating activities was negative 516 million yuan, compared with negative 734 million yuan in the same period last year. Basic earnings per share were 0.28 yuan, and the weighted average return on equity was 1.70%. As of the end of the first half of 2026, the company's inventory book value was 1.362 billion yuan, accounting for 26.07% of net assets, an increase of 422 million yuan from the end of the previous year. In addition, data from China Securities Depository and Clearing Corporation showed that as of August 21, 2026, 17.33% of Mingyang Electric's shares were pledged. The largest shareholder, Zhongshan Mingyang Electric Appliance Company Limited, pledged 62.45 million shares, accounting for 47.83% of its total holdings.